Germany’s Gold and the FED for Dummies
Christof Lehmann (nsnbc) , – In January 2013 the government of the Federal Republic of Germany (G.m.b.H.) dispatched auditors to the New York Federal Reserve where Germany has deposited some 6700 tons of gold bars after WW II. Each of them had an ID number and all of it was identifiable on its chemical composition.
The Federal Reserve sent the German auditors back to Germany after telling them that they were not allowed to see the gold, citing “security concerns”. Two follow-up delegations were, respectively, shown “one representative gold bar” and a suspiciously empty room containing a few bars. The auditors were neither allowed to enter nor were they allowed to inspect, test or even touch the gold. Understandably the incident caused a scandal when the story broke in Germany.
The scandal prompted the German authorities to ask for the repatriation of the German gold. The answer Germany got was that it only could be delivered in small portions, delivery to be completed not before 2020. Now, one year later, the mystery about Germany’s gold seems to have deepened. The small amounts of gold bars which have been repatriated since then don’t have the original serial numbers. Germans are told that it was necessary to “remelt” the gold bars and it is uncertain whether a chemical analysis would confirm that it at least is a remelt of the gold Germany deposited. So; I decided to write this article entitled Germany’s Gold and the FED for Dummies.
Germany’s Gold and the FED for Dummies.
Imagine yourself driving your brand new Lamborghini through the streets of Berlin. “You” in this case represent Germany. The “Lamborghini” represents Germany’s gold reserves.
Imagine you stopped over at a gas station. You fill up the tank, play with your car keys hoping that some hot (depending on your gender and sexual orientation) pays attention to you, and then it happens.
Instead of bumping into someone who wants to have at least as steamy sex with you as the engine of your Lamborghini is hot, you bump into a dirty, filthy, Hells Angels rocker.
Before you know it, you have lost a few of your teeth, have your kneecaps and elbows broken, and your nose has been moved a couple of inches. In this case, the “bump” represents the second world war and the rocker the liberator of Germany, hurrah, the “United States”.
Now, you are laying there, your nose bleeding, teeth broken, and that guy starts telling you a b.s. story about how dangerous those Bullshit rockers (the Soviet Union) are. Then he starts telling you:
Look buddy, you have just seen how dangerous the streets are, let me take that Lamborghini with me to the USA and keep it there. I have a really safe garage, and you can come and pick it up, once you have recovered so much that you can protect yourself again”.
So, while he is wrenching they car key out of your hands he breaks a couple of your fingers, but then he tells you something really nice, saying:
Because you are such a good friend, I guarantee you that I won’t crush your bones (economy) again, as long as you keep that car in my garage (FED & the gold standard).
You are suffering a severe case of PTSD, and you don’t exactly feel motivated to go and ask for your car back. Not surprisingly, it takes you a while to recover from the courtesies of your new-found “friend”.
As years go by, you often think about getting your Lamborghini back, but the PTSD has made you avoidant. As long as the filthy son of a bitch doesn’t come and threatens to break your bones again you don’t really want to think about it too much. Then comes the day, where you receive a phone call and you are being told.
Hey stupid! Remember me!? – I just though that I feel like crushing your bones anyway! (Quantitative easing, housing bubbles, no more gold standard since the 70s anyway etc, threatening global economic collapse). The day comes when you are telling yourself.
“I have had it, I want to see my Lamborghini. I don’t trust that guy and his fairy tales about a garage”.
You board a flight to New York, come to the address of the garage, and say.
“Hi buddy, it’s such a long time since I have seen my Lamborghini, I’d love to see in what condition it is”.
And you are told.
“Come on, my good friend, don’t you remember how dangerous the world is? We can’t just let you walk into our garage. That would be a breach of safety”.
You fly back to Germany. But this starts annoying you, so you are flying back to New York again and say.
“I thought about it buddy. If you let me see my Lamborghini, I will tell everybody how great it is that you don’t break their bones, and I would even recommend that they park their cars in Your garage”.
It was, of course, a thinly veiled threat. A language which crooks are universally apt at understanding. So, you are told to wait a moment, in the foyer, and that he will be back in a minute. You wait about three hours and the guy comes back with “a steering wheel of a Lamborgini”. The guy lets you have a look at the steering wheel for 3 seconds, turns away from you, laughing, and shouts:
“Be careful when you are driving to the airport buddy, we have a real killer traffic here in New York today”.
You walk all the way back to the airport, it’s raining, holes in your left shoe, your bones are hurting, your feet are swollen, and you decide that you have had it. You walk all the way back to the garage again and say:
“Buddy, that steering wheel has no number on it. I can’t even be sure that it was from my car. What about showing me the engine block so I can see the motor number”.
Your best friend and ally, since 1945, has a long, silent look at you and says:
“You know what, my friend, I am just about there where I have had it with you. I spent three f..g hours at unscrewing that steering wheel for you, then two more at putting it back, and all of that just to make sure that Your car is safe in my garage…. Damn it.. But O.K. because it is YOU, I’ll now spend five hours at taking the engine out of your car – of course, everything for a FRIEND”.
After that tantrum, he runs off while you start making yourself comfortable with a cup of coffee. It will be a long, long day today you think. And if he’s so tired, wasn’t it less time-consuming to take me to the car instead of bringing the engine block up here. Stupid Americans.
To your surprise, the guy comes back after five minutes. With “an engine block”. You have a look and see that the engine number has been filed away. You say “thank you my friend”, and take a cab back to the airport and take the next flight to Germany.
Once back in Germany you have a meeting with other members of the Lamborghini Club (you and the BRD G.m.b.H.) who had their noses and bones crushed, and you dig up the most dirty laundry of your friend and ally that you can possibly find. You call him and let him know that you are happy to take his offer to have the car delivered in parts and pieces, one at the time, delivery of all parts to be completed by 2020. You are telling yourself:
“It’s really not a good idea to have all of my bones crushed again, even though I may actually be able to break that bastard’s nose before he breaks my neck. The fact that he can’t show me the engine block or any other part with a number on it means that the Lamborghini is gone. Maybe it’s a good idea to get all of the parts I can get so I can reassemble “a car” rather than demanding “the car” which does not exist any longer. If I don’t get as much as possible as soon as possible I may end up with nothing, or worse”.
How can you be sure that the entire car is gone? Well, Germany asked for 300 out of some 6700 tons back and got some 35 tons instead. That is, a little more than 10% of the 300 tons it asked for. None of the gold bars which Germany received had the original serial number because, according to the FED, it was necessary to “smelt” the bars before delivery.
You see, all gold that is not purified up to 99 % has a fingerprint, something in its chemical composition that makes it unique. Once that gold has been refined up to 99 %, like the 35 or so tons Germany has gotten back, it is impossible to identify the gold.
Just in case you haven’t gotten it yet. Your Lamborghini has a serial number. You can always go back to the Lamborghini factory and test whether the chemical composition of the paint on a spare part is identical with the original one. NOW, because he is such a great friend, your American buddy in New York tells you:
“Hi buddy, – You know, your old Lamborghini had gotten a bit rusty and the paint didn’t look so great anymore. The luster was gone. Because you are such a great friend and valued customer, I decided to smelt the whole car down and send you the molten blocks of scrap metal. I guarantee you, it’s absolutely purified.
So, that was Germany’s Gold and the FED for Dummies. And just in case you still haven’t gotten it: THE GOLD IS GONE. So is the special relationship with our occupier.